CLUFF Natural Resources, the North Sea exploration company, is aiming to raise £1m in a share issue to apply for additional licences under the UK’s 30th offshore licencing round, writes Kevin Scott.
Funds will also be used give the company additional time to attempt to complete a farm out of its two wholly-owned gas licences in the Southern North Sea and to continue to pursue additional investment opportunities, as well as for general working capital purposes.
The board, led by Algy Cluff, expect the net proceeds of the subscription to fund the company through to at least the middle of Q2 of 2018.
The funds will be raised in two tranches, with the first batch of shares raising £625,000 through existing share allotment authorities. The issuing of a further £325,000 worth of shares is conditional on shareholder approval and will be voted on at a general meeting to be held on or around October 26.
The shares were issued at 1.5p per share, a 21 per cent discount on Thursday’s closing price. Shares closed last night down 10.39 per cent at 1.72p.
In its interim results, Cluff announced it had widened losses to £774,288, with Algy Cluff noting that it was “difficult to fully articulate the effort which we have invested in promoting the farm-out of these licences”.
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